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Business Debt/buying a business thats in debt?

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Expert: - 6/7/2011


Question
i looking to purchase an LLC medical company to be more clear a IDTF ( Independent diagnostic testing facility). the problem is the company is going under has a lot of debt and was wondering who owes the money, what happens to the dept, and what i should look out for. thank you for your time!

Answer
Hi Brandon,

One way to avoid the debt is purchase the assets of the business, as opposed to purchasing the LLC, which may be liable for debt to many creditors.  It's important to keep in mind that when purchasing assets, you need to run a UCC (Uniform Commercial Code) search to ensure that no creditors have liens on those assets.  Any creditors that have UCC liens against the assets would need to grant a release (which they'll usually do in exchange for cash).  Once all assets are free of liens, you will then own the assets of the business with no risk of having to deal with any of the LLCs creditors.

Regards,
Jason Milleisen
Founder, Distressed Loan Advisors
www.JasonTees.com
1-877-436-4533

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Jason Milleisen

Expertise

Jason Milleisen is the founder of Distressed Loan Advisors, and offers expert advice about dealing with SBA Loan Default. I have written numerous articles about SBA loan issues, and you can read them all at www.JasonTees.com. My services include assistance with debt settlement (aka Offer In Compromise), loan modifications, and lien releases. If it has to do with an SBA loan, I can likely be of service. Before I started my own debt settlement firm, I was an SBA workout officer at a large SBA lender, and handled and $85,000,000 delinquent loan portfolio. I negotiated directly with the SBA, so when it comes to settling SBA debt, I can say with confidence that there are no workout consultants out there who have as much first hand knowledge as I do. When it comes to SBA loan default, there is very little that I have not seen, so you can feel confident that my advice is based on past experience.

Experience

Jason, the founder of DLA, has experience with all types of loans and businesses, from $5,000 unsecured lines of credit all the way up to $1 Billion large corporate syndications. He has 10+ years of commercial loan experience, and was trained at the 2nd largest financial institution in the world. Jason also spent 2+ years as an SBA workout officer, where he reviewed and negotiated SBA settlement offer with client.

Publications
- Wordpress - Ezine - Go Articles - Article Base

Education/Credentials
Bachelors of Business Administration Major: Finance Minor: Accounting

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Confidential

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